Globalization and Technology Interdependence,

In this book Rajneesh Narula examines the interdependence of globalization and technological innovation at two levels: first, between locations, by examining the role of cross-border initiatives in the innovation process; second, between corporate entities, by studying the dynamics of inter-firm R&D collaboration. Examines the international aspect of the interdependence of globalization and technology. Explores the role of cross-border interdependence in the innovation process, as well as interdependence between firms. Reveals an interesting paradox: locations and firms are increasingly interdependent through supranational organisations and the flow of investments, technologies, ideas, and people; but knowledge creation suffers from 'inertia' and remains concentrated in a few locations. Draws on a wide variety of data at the firm and national level in the sphere of R&D and technological innovation. Spells out important lessons for both policy makers and managers on industrial policy as well as the organisation of research and development by firms.

Rajneesh Narula is Professor at the Department of International Economics and Management at the Copenhagen Business School and TIK Centre, University of Oslo.

List of Figures

viii

List of Tables

x

List of Boxes

xii

Abbreviations

xiii

Acknowledgements

xv

Introduction

1

(12)

1 Technology and Globalization as Concatenated Processes: A Brief Commentary on the Causes of Globalization

13

(38)

1.1 Introduction

13

(1)

1.2 Mapping globalization

14

(4)

1.3 Financial liberalization

18

(2)

1.4 Multinational enterprises

20

(6)

1.5 The globalization of innovation by MNEs

26

(3)

1.6 Liberalization of economic systems

29

(4)

1.7 Regional and economic integration

33

(2)

1.8 The role of new technologies in globalization

35

(3)

1.9 The knowledge-intensive, multi-technology firm

38

(2)

1.10 Political economy: shifting hegemonies and discontinuities

40

(2)

1.11 Standardization and homogeneity across borders

42

(3)

1.12 The dynamics of international interdependence: countries and firms

45

(6)

2 Cross-border Interdependence between Locations: Learning, Growth and Systems of Innovation

51

(25)

2.1 Introduction

51

(4)

2.2 The basic concepts underlying systems of innovation

55

(4)

2.3 Understanding learning processes

59

(3)

2.4 Understanding the growing international dimension of learning

62

(6)

2.5 Limitations of learning

68

(5)

2.6 Conclusions

73

(3)

3 Innovation Systems and 'Inertia' in R&D Location: Norwegian Firms and the Role of Systemic Lock-in

76

(33)

3.1 Introduction

76

(1)

3.2 Systems of innovation and inertia in R&D

77

(7)

3.3 Responses to inertia from a firm perspective

84

(3)

3.4 The evidence: R&D activities of Norwegian firms

87

(10)

3.5 'Systemic' lock-in: dependence on the innovation system

97

(9)

3.6 Summary and policy implications

106

(3)

4 Cross-border Interdependence between Firms: The Growth of Strategic Technology Partnering

109

(24)

4.1 Introduction

109

(2)

4.2 The characteristics of ownership advantages and technology

111

(2)

4.3 Explaining strategic technology partnering: some definitions

113

(6)

4.4 The growth of alliance activity

119

(4)

4.5 The special case of strategic alliances to conduct R&D

123

(6)

4.6 Conclusions

129

(4)

5 In-house R&D, Outsourcing or Alliances? Some Strategic and Economic Considerations

133

(31)

5.1 Introduction

133

(1)

5.2 The growth of the multi-technology firm and non-internal R&D

134

(4)

5.3 Standardization, cost and industrial organization

138

(3)

5.4 Distributed competences and the choice between internal and non-internal activity: a static view

141

(5)

5.5 The dynamic view: the evolution of technological paradigms

146

(4)

5.6 Dynamic aspects of choosing between in-house R&D, alliances and outsourcing

150

(7)

5.7 Some conclusions, caveats and avenues for future research

157

(5)

Appendix A

162

(2)

6 Technological Catch-up and Strategic Technology Partnering in Developing Countries

164

(20)

6.1 Introduction

164

(2)

6.2 Strategic alliances and catching up

166

(6)

6.3 Organizational modes and developing-country STP

172

(3)

6.4 Differences in the industrial specialization of countries

175

(5)

6.5 Conclusions

180

(4)

7 Technology, Globalization and Policy Issues: Some Observations

184

(27)

7.1 The challenges of globalization and fuzziness

184

(5)

7.2 The role of governments in innovation

189

(4)

7.3 Government intervention and innovative activity

193

(3)

7.4 R&D cooperation and governments: direct vs. indirect intervention

196

(6)

7.5 On innovation systems and learning: some policy issues

202

(9)

Notes

211

(7)

References

218

(20)

Index

238

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Globalization and Technology Interdependence, Innovation Systems and Industrial Policy

Summary

Author Biography

Table of Contents

Supplemental Materials